Foodtech major Zomato has acquired 100% stake in full-stack sports platform Fitso, according to three people aware of the details of the transaction. This is the first acquisition by Zomato after UberEats was bought by the Gurugram-based company in January 2020.
“The deal has been internally announced by Zomato. Fitso’s team along with its co-founders will join Zomato,” said one of the sources on condition of anonymity.
Fitso offers enthusiasts a way to engage in sporting activities such as swimming, basketball and tennis, among others. Using its subscription model, users on the platform can choose a sport and book a time slot at their nearest facility.
“The size of the deal is in the range of Rs 80-100 crore,” said the second person requesting anonymity as the information is still private. “The transaction consists of both equity and cash.”
The acquisition talks were first reported by MoneyControl in September 2020.
Fitso claims to have 2,000 paying subscribers across the national capital region (NCR). Since its inception in 2015, it has raised $1.7 million from SRI Capital, Pankaj Chaddah, Helion Ventures’ founder Ashish Gupta and AppyHigh.
Sources emphasised that the acquisition would help Zomato get into the fitness space. “It appears to be a smart move by Zomato as most of its users are millennials who can be potential takers of Fitso’s offerings,” said the person quoted above.
Queries sent to Zomato and Fitso’s cofounder Saurabh Aggarwal didn’t elicit any immediate response.
The acquisition of Fitso by Zomato has come a month after it had closed a $600 million financing round at a valuation of $3.9 billion. The company is also preparing for a public listing this year. An initial public offering or IPO in India is unlikely as Zomato is still not near profitability.
According to Fintrackr, the company’s losses grew 2.4X to Rs 2,385.6 crore in FY20. The online food delivery major also registered a 98.4% surge in its collections to Rs 2,605 crore in FY20 from Rs 1312.6 crore in FY19.